A security token offering (STO) is an evolution of the ICO concept. It’s a more secure way to raise capital using crypto currency and combines the benefits of initial coin offering with the strength of regulated financial securities.
An STO allows consumers to purchase digital coins or tokens as part of a public offering the same as they do in an ICO. The investment is backed by tangible items or assets such as profit or revenue in a company, a physical asset or other structure which can be leveraged as an investment. A security token is an actual financial security similar to holding shares or stocks in a company. In essence, a security token suggest to regulators that issuers are transparent about exactly what they are offering and it knowledge that the token is offered as a security. This helps issuers reduce the risk of regulatory interference and also help secure the rights of investors by placing legal and financial obligations onto the security issuer.
For companies that wish to tokenise their securities offering rather than listing shares on a stock exchange, STOs have the potential to become the first choice of their funding. STOs compete with traditional IPOs as the costs remain cheaper and more investors are realising the advantages of digital tokens over “real shares”.
PAC is registered with AUSTRAC to provide Digital Currency Exchange services.
Provider number DCE100594107-001.
Austrac is the Australian Government authority responsible for monitoring and regulating Anti-Money Laundering (AML) and counter-terrorism financing legislation. PAC has a AML/CTF program in place to support ongoing Austrac compliance requirements.
PAC’s team of finance, technical and marketing experts can provide advice and guidance on how to structure a compliant STO for maximum return.
Our STO platform - PICO - is a complete toolset for conducting legally compliant securities offerings with a network of services designed to lower operating costs.
The platform's provides: